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This paper studies a continuous-time market {under stochastic environment} where an agent, having specified an investment horizon and a target terminal mean return, seeks to minimize the variance of the return with multiple stocks and a…

Portfolio Management · Quantitative Finance 2013-02-28 Wan-Kai Pang , Yuan-Hua Ni , Xun Li , Ka-Fai Cedric Yiu

This paper investigates the robustness of stochastic optimal control for controlled regime switching diffusions. We consider systems driven by both continuous fluctuations and discrete regime changes, allowing for model misspecification in…

Optimization and Control · Mathematics 2025-11-24 Somnath Pradhan , Dinesh Rathia

Portfolio management problems are often divided into two types: active and passive, where the objective is to outperform and track a preselected benchmark, respectively. Here, we formulate and solve a dynamic asset allocation problem that…

Portfolio Management · Quantitative Finance 2018-07-31 Ali Al-Aradi , Sebastian Jaimungal

This paper concerns a continuous time mean-variance (MV) portfolio selection problem in a jump-diffusion financial model with no-shorting trading constraint. The problem is reduced to two subproblems: solving a stochastic linear-quadratic…

Optimization and Control · Mathematics 2024-06-07 Xiaomin Shi , Zuo Quan Xu

In this paper, we study an optimal control problem of a mean-field forward-backward stochastic system with random jumps in progressive structure, where both regular and singular controls are considered in our formula. In virtue of the…

Optimization and Control · Mathematics 2023-05-30 Tian Chen , Kai Du , Zongyuan Huang , Zhen Wu

We study the optimal control problem for a weighted mean-field system. A new feature of the control problem is that the coefficients depend on the state process as well as its weighted measure and the control variable. By applying…

Optimization and Control · Mathematics 2022-08-25 Yanyan Tang , Jie Xiong

In this paper we consider the maximum principle of optimal control for a stochastic control problem. This problem is governed by a system of fully coupled multi-dimensional forward-backward doubly stochastic differential equation with…

Optimization and Control · Mathematics 2018-09-07 AbdulRahman Al-Hussein , Boulakhras Gherbal

In this paper, we tackle the dynamic mean-variance portfolio selection problem in a {\it model-free} manner, based on (generative) diffusion models. We propose using data sampled from the real model $\mathbb P$ (which is unknown) with…

Portfolio Management · Quantitative Finance 2025-09-03 Ahmad Aghapour , Erhan Bayraktar , Fengyi Yuan

This paper considers the problem of partially observed optimal control for forward stochastic systems which are driven by Brownian motions and an independent Poisson random measure with a feature that the cost functional is of mean-field…

Probability · Mathematics 2014-03-19 Yaozhong Hu , David Nualart , Qing Zhou

In this paper, we study the relationship between general maximum principle and dynamic programming principle for risk-sensitive stochastic optimal control problems, where the control domain is not necessarily convex. The original problem is…

Optimization and Control · Mathematics 2026-02-06 Huanqing Dong , Jingtao Shi

In this article, we apply a probabilistic approach to study general mean field type control (MFTC) problems with jump-diffusions, and give the first global-in-time solution. We allow the drift coefficient $b$ and the diffusion coefficient…

Probability · Mathematics 2025-10-01 Alain Bensoussan , Ziyu Huang , Shanjian Tang , Sheung Chi Phillip Yam

We consider the stochastic optimal control problem of nonlinear mean-field systems in discrete time. We reformulate the problem into a deterministic control problem with marginal distribution as controlled state variable, and prove that…

Probability · Mathematics 2015-12-01 Huyên Pham , Xiaoli Wei

In this paper, we investigate a mean-field singular stochastic optimal control problem for systems governed by mean-field regime-switching singular stochastic differential equations. The state process is assumed to depend on both a regular…

Optimization and Control · Mathematics 2025-12-01 Maalvladédon Ganet Somé , Edward Korveh

In this paper, we establish a general stochastic maximum principle for optimal control for systems described by a continuous-time Markov regime-switching stochastic recursive utilities model. The control domain is postulated not to be…

Optimization and Control · Mathematics 2019-05-02 Liangquan Zhang , Xun Li

The optimal control of epidemic-like stochastic processes is important both historically and for emerging applications today, where it can be especially important to include time-varying parameters that impact viral epidemic-like…

Optimization and Control · Mathematics 2017-10-02 Yingdong Lu , Mark S. Squillante , Chai Wah Wu

We develop an approach for two player constraint zero-sum and nonzero-sum stochastic differential games, which are modeled by Markov regime-switching jump-diffusion processes. We provide the relations between a usual stochastic optimal…

Optimization and Control · Mathematics 2023-01-31 Emel Savku

Although the mean-variance control was initially formulated for financial portfolio management problems in which one wants to maximize expected return and control the risk, our motivations also stem from highway vehicle platoon controls…

Optimization and Control · Mathematics 2014-01-21 Zhixin Yang , G. Yin , Le Yi Wang , Hongwei Zhang

Stochastic maximum principle of nonlinear controlled forward-backward systems, where the set of strict (classical) controls need not be convex and the diffusion coefficient depends explicitly on the variable control, is an open problem…

Probability · Mathematics 2008-12-20 Seid Bahlali

This work deals with an optimal asset allocation problem for a defined contribution (DC) pension plan during its accumulation phase. The contribution rate is proportional to the individual's salary, the dynamics of which follows a Heston…

Optimization and Control · Mathematics 2021-03-04 Xiaoyi Zhang , Linlin Tian

We consider a couple of integrodifferential PDEs arising from a stochastic Markovian control problem subjected to initial-terminal conditions. These equations correspond to the MFG system for a controlled jump-diffusion process. We prove…

Mathematical Physics · Physics 2022-10-12 Olga Rozanova , Ilnar Manapov